The Rupee closed stronger on Tuesday, hitting a one-week peak, as expectations of a U.S. Federal Reserve rate cut kept the dollar weak against most currencies. The rupee closed at 88.0525 per dollar, up 0.18% on the day after touching 88.02, its strongest since September 9. Most Asian currencies also firmed, while the dollar slipped to a more than two-month low against the sterling and the euro . The dollar index was last down 0.3% at 97. The Fed's policy decision is due post-Indian market hours on Wednesday, where a 25-basis-points rate cut is fully priced in by money markets. Analysts attribute the dollar's weakness to investor positioning heading into the event. The rupee regained some footing after hitting its all-time low of 88.4550 last week amid persistent worries over the impact of steep U.S. tariffs on both trade and foreign portfolio flows. Foreign investors have sold about $1 billion of local stocks over September so far on a net basis, taking the year-to-date outflow tally to about $16 billion. The Indian central bank has stepped up its presence in the offshore non-deliverable forward market to support the rupee, Reuters reported earlier. The dollar fell across the board on Tuesday, hitting a four-year low against the euro, as investors firmed bets for a Federal Reserve interest rate cut this week. The euro rose by 0.9% higher to $1.1867, its highest level since September 2021. The U.S. dollar index , which tracks the dollar against a basket of six major currencies, was 0.7% lower at 96.636, its lowest since July 1. Sterling was 0.5% higher at $1.366, a more than two-month high, after data showed on Tuesday that Britain's jobs market has lost a little more steam, potentially easing worries at the Bank of England about persistent inflation pressures. The Office for National Statistics figures showed the number of workers on companies' payrolls falling for a seventh month in a row, while basic wage growth in the private sector - watched closely by the BoE - slowed to 4.7% between May and July from 4.8% in the three months to June. The BoE is expected to keep interest rates on hold this week, after cutting in August. Against the yen, the dollar slipped to a one-month low and was last trading down 0.7% to 146.35, ahead of the Bank of Japan policy meeting on Friday, with money markets expecting the central bank to keep rates at 0.5% . Oil prices rose over a dollar a barrel on Tuesday, as traders weighed the possibility that Russian supplies may be disrupted by Ukrainian drone attacks on its ports and refineries, and awaited the Federal Reserve's decision on U.S. interest rates. Brent crude futures were up $1.01, or 1.5%, at $68.45 a barrel by 12:36 p.m. ET (1636 GMT). U.S. West Texas Intermediate crude futures were up $1.21, or 1.9%, to $64.51 a barrel.......